Park valuation question?


#1

John and I are beginning our due diligence on a 90 space park and wondered how you assign value to a s/w which is park owned and rented? This park has about 45-50 of these and we’re unsure how to calculate them as in Steve’s 60/30 rule. Any thoughts?

Jerry


#2

What I do is find out what your wholesale cost would be to place a used home in the park ready for occupancy ( or sale). Then I adjust the homes in the park based on year and condition. Whatever you do dont evaluate it based on rental income. Hope this helps

Rick Ewens


#3

A different question to experts out there, how do I value RV spaces and rental houses in a park? Thanks

Post Edited (09-24-07 04:59)


#4

Jerry,

I don’t think I have your card, otherwise I’d call you. Can you give me a call in the next couple days?

Lin

(828) 337-7730


#5

Jerry,

You might check your local newspaper for MH’s for sale and compare prices. Also as Rick stated, be sure to take in consideration the cost to have MH’s ready for sale or rent. In my area, you would have to add approximately $2,000 to tie-down, septic hook-up, water & electric to the wholesale price of a MH to have it ready to sale or rent. Then add $550.00- $600.00 more for the skirting material / labor. One important suggestion would be; ask the present Park Owner, his/her opinion of the worth of each. Of course, don’t put all your faith in the answer, just use it as a starting point.